RBC Investor Services Trust Singapore Limited, trustee of OUE Hospitality Real Estate Investment Trust (OUE H-Reit), has entered into a new facility agreement for the grant of a S$270 million term loan.
This loan will be used to partially prepay the balance outstanding of the existing S$293 million term loan under the 2013 facility agreement and to partially finance the acquisition of Crowne Plaza Changi Airport extension (CPEX).
The new facility agreement was agreed with BNP Paribas acting through its Singapore branch, RHB Bank Bhd, Singapore Branch, Sumitomo Mitsui Banking Corporation, Industrial and Commercial Bank of China Limited, Singapore Branch and Cathay United Bank.
In a separate filing to the bourse operator, OUE Hospitality Reit Management, manager of OUE H-Reit; and OUE Hospitality Trust Management, as trustee-manager of OUE Hospitality Business Trust (OUE H-BT), said that the gross proceeds of approximately S$238.6 million from the rights issue has been materially utilised, leaving a balance of S$5.6 million for working capital purposes.
They said that OUE H-Reit has utilised S$228 million to partially prepay the S$293 million term loan under the 2013 facility agreement which matures in July 2016.
A further S$5 million was used as payment of underwriting fees and expenses relating to the rights issue.